Financial Risk Manager Part 1
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Ultimate access to all questions.
Jack Johnson is going to receive a physical commodity from a settling long futures trade. Which of the following statements best describe the role of Johnson and the clearinghouse in this process?
A
The clearinghouse will coordinate Johnson's settlement with any eligible settling shorts.
B
Johnson will have to contact the clearinghouse to coordinate with any eligible settling short.
C
Johnson will have to close his position with the original counterparty.
D
The clearinghouse will coordinate Johnson's settlement with the original counterparty only.